The USDCAD remains within the “Red Box” that has confined/defined the range since mid-Dec.

The USDCAD has experienced significant volatility during the election period. Yesterday, the pair reached a new high of 1.4514, the highest level since 2020, while the previous day saw a new low near 1.42899, the lowest since mid-December. These moves briefly broke out of the “Red Box” range, which has defined trading between 1.42899 and 1.4466 since mid-December. However, both extremes quickly reversed, bringing the price back within this range.

In today’s trading, the price tested the lower end of the range during the late European morning session, hitting a low of 1.4300—a psychologically significant level—before bouncing back, aided by weaker CAD sentiment following lower producer price data.

The rebound has pushed the price toward a key cluster of moving averages, including the 100/200-hour moving averages and the 100-bar moving average on the 4-hour chart, spanning 1.4381 to 1.43916. This area serves as a critical pivot point for traders; sellers may defend this zone with stops placed above it, while a break higher would signal increased control for buyers.

Find out in details, the levels in play in the short video. Be aware. Be prepared.

This article was written by Greg Michalowski at www.forexlive.com.